Aer Lingus needs to get real

David McWilliams thinks that the Irish public is being a little unrealistic in its assessment of the Ryanair bid. He is right. The comments give an indication of how unrealistic the public is. But the reality is that Aer Lingus is a minnow in a world of eagles and it has to be bought by somebody if it is to avoid the disastrous fate of Alitalia and many other flag carriers before it.

It is interesting to see the perception people have of Ireland’s biggest airline. There is an assumption that because Ryanair does one particular thing well, or a particular way, that it cannot do anything else.

Shinsei Bank – a model for Irish banking reform?

J.C Flowers is one of the companies apparently interested in investing in and restructuring Irish banks, in particular, Bank of Ireland. The same company took over Long Term Credit Bank of Japan and restructured it into Shinsei (‘rebirth’) Bank which according to Joichi Ito describes as ‘an example of how legacy companies in Japan can be turned around with good management and smart methods’.

A lot of people are concerned that foreign investors will do something radical with the Irish banks. But the reality is that this is what is required. Our banking is not anything like as efficient as it could be and our bankers are nowhere near as smart as they thought they were. If the sector does not restructure itself now, it will have restructuring forced upon it by competition from across the eurozone within a few years. It is worth reading what former Bank of Ireland CEO Michael Soden has said. Leaving things the way they are is just not an option.

bailing out Irish banks

The government has already bailed out Irish banks. Now it has to do so again. The reason for this is that it wasn’t done properly the first time. The guarantee was simply no help. Although it provided liquidity (i.e., so that the banks could get a few euros on tick to carry on trading) it did nothing to deal with the losses that have resulted from the fall in the value of property and the resulting fall in value of the loans secured on property. The banks need capital invested in order to cover this.

Until they get the money, they won’t be able to lend money to businesses, and that will result in unnecessary bankruptcies and undermine whatever growth there is in the economy..  I am just after hearing about a business that can’t raise a ten thousand euro overdraft – the lack of facilities will stop this business from growing. (Bill Cullen agrees with me, so obviously it must be true.)

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Vote for the Golden Spiders

I was on the judging panel for the Golden Spiders for this year. It was very interesting. The judging process is pretty thorough, but it’s certainly not perfect. Anyway, you too can be a Golden Spiders judge by participating in the public voting  for the Social Networking and Community Website.

The organizers are pretty open to ideas about how to get the community more involved next year. Any thoughts or views?

Court goings-on

So, my solicitors and I spent a day in Court with Swords Express, the public transport company I started to provide decent, fast transport to the people of Ireland’s biggest town last year. You only go to Court when there is something really big at stake, and you only go to Court with the government if you think you are very likely to get a favorable outcome. The costs involved are tremendous. The government has limitless resources and is not afraid to bring them to bear. Even for our one-day event and even though no evidence was heard in Court and the State decided to settle on the day, the costs will be into six figures, money which the taxpayer will end up having to pay.

The anthropology of YouTube

This is a great video about why youtube and the whole Internet makes a big difference to the way we live.

Nice review of my book!

Someone (Mr P. Stewkesbury) wrote a nice review of my book on Amazon. (Scroll down to the bottom.) It is very kind.

Service Design article in the Irish Times

There is an interesting (though slightly hard-to-believe) case study in the Irish Times today, with some interesting observations from experts. It’s strange, some of the observations seemed quite good in the print edition, but seem quite lame on the Internet. Part of the reason for that is that the full details of the contributors aren’t given on-line and these are really an integral part of the article.

Anyway, the important lesson from the article is that service is something that can be designed and improved, and many problems can be solved or at least reduced without always needing more resources.

Consumer rights are not protected

This article in the Irish Times (now free) is an important description of the problems with the National Consumer Agency and other bodies by Michael Casey, a former assistant director of the Central Bank of Ireland.

UPDATE: Ann FitzGerald of the National Consumer Agency responds.

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Swords Express Day Out

Come for a spin with me on the Swords Express on Saturday 24 November at 11.30 from Eden Quay. It would be great to see a few people from the blog there. You can come back to town at 1pm or 2pm, as you wish. I will pay for the tickets. Intention here is to show non Swords people what the route is all about although if anybody wants to meet us in Swords they are welcome to as well. Let me know if you are coming so that I have an idea of numbers.